> a possible reason why he favours monetary policy: it devalues currency, taking more from those who hold large cash balances i understand that logic, but curr

> a possible reason why he favours monetary policy: it devalues currency, taking more from those who hold large cash balances i understand that logic, but currency devlauation ends up making things worse for pretty much everyone but the extremely wealthy. in a deflationary economy, all you have to do in order to prepare for the future is just spend less than you earn. that's it. the savings will be more valuable in the future than it is now. in an inflationary economy, not only must you spend less than you earn, you must now take on risk just to maintain the value of what you already have. the entire financial system exists because for most people, investing (choosing loans or investments) requires more resources and knowledge than they have on their own. you're _forced_ to play a game you don't really understand: picking companies to invest in. most people who 'get it' will tell you to just buy and hold - but all of that would be totally unnecessary if currency were deflationary or just kept its value. of course, the extremely wealthy have much more money to invest, and can spend their whole lives managing their portfolios, because working isn't necessary for them. they benefit from the increased flow of cash into investment markets, enabling the existence of a financial industry that is necessary to service _everyone's_ 401(k) and pension fund - because "spend less then you earn" isn't enough.